Bundesbank denies it will allow German inflation to rise

Bundesbank president Jens Weidmann has categorically denied that the German central bank is prepared to tolerate higher inflation in order to improve the situation in the debt-mired eurozone.Such recent talk was an "absurd debate," he said in comments in Friday's Sueddeutsche Zeitung daily, stressing that the Bundesbank was mandated to maintain the annual inflation rate at around two percent.

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It took Germany's central bank less than a day to knock a reported proposal by the ECB to set interest rates caps on Spanish and Italian bond yields.
Bloomberg reports Bundesbank Widens Euro Rift With Criticism of ECB Bond Plan.
Germany’s Bundesbank stepped up its criticism of the European Central Bank’s plan to embark on potentially “unlimited” government bond purchases, widening a rift over how to tackle the sovereign debt crisis.

Berlin (AFP) - The head of Germany's central bank on Saturday voiced his "scepticism" about the ECB's decision to launch a trillion-euro bond-buying programme in a bid to ward off deflation and boost the eurozone economy.

Bundesbank president Jens Weidmann warned French president-elect Francois Hollande on Saturday against tampering with the European Central Bank or the EU fiscal pact.Speaking in an interview with the daily Sueddeutsche Zeitung, he also reminded Greece it would have to respect its commitments or risk having its bailout aid suspended.

The Bundesbank's Jens Weidmann appears to have no clue that the ECB (and thus the Bundesbank) is failing in its mission to stabilize inflation at a level "near to but below 2%/year", and no desire to actually have it accomplish its assigned mission:

With EURUSD hardly budging, constantly disappointing economic data (from periphery to the core now), and central bank transmission mechanisms that are entirely clogged and useless for anything but stuffing the pockets of bloated bank balance-sheets with domestic sovereign debt, it is no wonder Germany's Bundesbank has said 'enough'. "If we pursued our own monetary policy... it would look different," explained Bundesbank chief Jens Weidmann.

While German finance minister Schaeuble 'blessed' the French two-year grace-period for 'missing the deficit targets', adding that "he trusts France.. and is aware of its duties and responsibilities," it is his fellow countryman that is making headlines.

Chancellor Angela Merkel is now under pressure from a third front, this time, from Jens Weidmann, president of the Bundesbank (Germany's Central Bank).
The Financial Times reports Weidmann warns Merkel over weakening
Germany’s top central banker has criticised the decisions of last week’s summit to help debt-laden eurozone members, warning that the bloc was “constantly mutualising risks and weakening the agreed rules”.